Inefficiency in an economy can be caused by
a. misallocating resources.
b. underemploying resources.
c. discrimination.
d. All of the above are correct.
d
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Asarta Inc. is polluting into a nearby fishing; doing so benefits them $40,000 a year. The fishermen are unhappy as their trout are dying off. Typically, the fishermen can catch trout and sell it to a local market where they can earn about $8,000 a year. Currently, the fishermen have the rights to use the stream as they see fit. Which of the following is an optimal solution according to the Coase Theorem?
A. Asarta Inc. could pay the fishermen $8,500 and keep polluting B. There is no optimal solution given the current property rights C. The fishermen could pay Asarta Inc. $4,000 to stop them from polluting D. Asarta Inc. could pay the fishermen $7,000 and keep polluting
In the figure above, ________ is a technologically efficient point
A) d B) f C) g D) None of the selections is correct.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
An economy in which a central authority draws up a plan that establishes what will be produced and when, sets production goals, and makes rules for distribution is a
A. free-market economy. B. command economy. C. laissez-faire economy. D. public-goods economy.